New Delhi: While the sales and launches of residential property are down in the country, commercial property is more than making it up. The net absorptions of commercial property more than a doubled in the third quarter (Q3) of the current year as compared to the same period of 2018 in the top seven cities of the country. The net absorptions stood at 10.9 million sq ft in Q3 of the current year as against 5.3 million sq ft in the corresponding period of the previous year, according to a report by property consultant JLL.
The new completion of office space too registered impressive growth. About 11.9 million sq ft of office space was completed in Q3 of 2019, a growth of 92 percent as compared to 6.2 million sq ft that was witnessed in Q3 of 2018.
The vacancy levels have gone down to 13.2 percent in Q3 of the current year from 13.7 percent during same period of 2018.
The net absorption in the first nine months of the current year stood at 33 million sq ft, a growth of 40 percent over the same period of 2018. The net absorption was 23.4 million sq ft in the first nine months of 2018.
New completions have also gone up by 42 percent in the first nine of 2019 over 2018.
“Investors, domestic and foreign alike have been chasing investment ready commercial assets and development opportunities in top cities. The demand in the office market is expected to grow at a similar momentum for the next few years,” said Samantak Das, Chief Economist and Head of Research & REIS, JLL India